Colgate-Palmolive (CL) AI Stock Analysis

• Market Cap: $61.99B
• Dividend Yield: 2.62%
• Average Volume (3M): 6.88M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.12
• Revenue Growth: -0.05%
• EPS Growth: 2.49%
• Country: US
• Employees: 34,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.91
• Shares Outstanding: 806,064,940
• 10 Day Avg. Volume: 8,786,658
• 30 Day Avg. Volume: 6,880,177
• PEG Ratio: 0.95
• Price to Book (P/B): 350.65
• Price to Sales (P/S): 3.70
• P/FCF Ratio: 20.96
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 3.59
• Enterprise Value/Gross Profit: 5.96
• Enterprise Value/Ebitda: 14.99
• 1Y Price Target: $87.75
• Price Target Upside: 11.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $82.00 ▲(4.11% Upside)

Colgate-Palmolive's overall score reflects strong financial performance and strategic initiatives, but is tempered by high leverage, operational inefficiencies, and technical weakness. The company's focus on innovation and emerging markets is positive, but challenges in developed regions and valuation concerns weigh on the outlook.

Positive Factors

Strong Performance in Emerging Markets

Colgate-Palmolive's strong performance in emerging markets like Mexico and Brazil indicates a robust growth potential, as these regions offer higher growth rates compared to mature markets. This positions the company well for sustained revenue growth and market expansion.

Investment in AI and Innovation

Significant investment in AI and innovation is likely to enhance operational efficiency and consumer engagement, providing a competitive edge and supporting long-term growth and adaptability in a rapidly changing market landscape.

Hill's Pet Nutrition Market Share Gains

Market share gains in Hill's Pet Nutrition, especially in strategic segments, highlight the company's ability to capture consumer demand and expand its presence in the growing pet nutrition market, contributing to diversified revenue streams.

Negative Factors

High Debt Levels

High debt levels can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities and weather economic downturns, posing a long-term challenge to financial stability.

Challenges in Developed Markets

Challenges in developed markets and pressures in China could limit growth and profitability, as these regions face slower economic growth and competitive pressures, impacting overall performance and strategic outcomes.

Gross Margin Pressure

Sustained gross margin pressure from raw material costs and tariffs could erode profitability, reducing the company's ability to reinvest in growth initiatives and maintain competitive pricing, affecting long-term financial health.

Colgate-Palmolive Business Overview & Revenue Model

Company Description

Colgate-Palmolive Company is a global leader in the consumer goods sector, specializing in the production and marketing of personal care, household, and oral care products. Founded in 1806, the company operates in two main segments: Oral, Personal and Home Care, and Pet Nutrition. Core products include well-known brands such as Colgate toothpaste, Palmolive dish soap, Speed Stick deodorants, and Hill's Science Diet pet food. With a strong presence in over 200 countries, Colgate-Palmolive is committed to sustainability and improving the health and hygiene of consumers worldwide.

How the Company Makes Money

Colgate-Palmolive generates revenue primarily through the sale of its wide range of consumer products. The company's revenue model is based on direct sales of products through various channels including retail, e-commerce, and wholesale distribution. Key revenue streams include oral care products (like toothpaste and mouthwash), personal care items (such as soaps and deodorants), and pet nutrition products. The company benefits from strong brand loyalty and recognition, which drives repeat purchases. Additionally, Colgate-Palmolive invests in marketing and product innovation, allowing it to maintain competitive advantages in the marketplace. Significant partnerships with retailers and e-commerce platforms further enhance its distribution capabilities, contributing to overall earnings.

Colgate-Palmolive Financial Statement Overview

Summary

Colgate-Palmolive shows strong revenue growth and profitability with a significant increase in sales. However, high debt levels and decreased operational efficiency pose financial risks.

Income Statement

Colgate-Palmolive's income statement shows strong profitability with a consistent gross profit margin around 60% and a net profit margin improving to 14.5% in the TTM. Revenue growth has been steady, with a significant 49% increase in the TTM, indicating robust sales performance. However, EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, peaking at 40.15 in 2024, which indicates significant leverage and potential financial risk. Return on equity has improved to 5.46% in the TTM, but remains relatively low, reflecting moderate efficiency in generating returns from equity. The equity ratio is low, suggesting a heavy reliance on debt financing.

Cash Flow

Cash flow analysis shows a positive trajectory with free cash flow growth of 2.17% in the TTM. The operating cash flow to net income ratio is not available for the TTM, but historical data shows a healthy conversion of net income to cash. The free cash flow to net income ratio remains strong at 85.97%, indicating efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.10B	20.10B	19.46B	17.97B	17.42B	16.47B
Gross Profit	12.09B	12.11B	11.25B	10.15B	10.29B	9.93B
EBITDA	4.81B	4.85B	4.25B	3.37B	3.76B	4.35B
Net Income	2.91B	2.89B	2.30B	1.78B	2.17B	2.69B
Balance Sheet
Total Assets	17.51B	16.05B	16.39B	15.73B	15.04B	15.92B
Cash, Cash Equivalents and Short-Term Investments	1.28B	1.10B	966.00M	775.00M	832.00M	888.00M
Total Debt	8.42B	8.51B	9.06B	9.27B	7.83B	8.21B
Total Liabilities	16.27B	15.50B	15.44B	14.93B	14.07B	14.82B
Stockholders Equity	856.00M	212.00M	609.00M	401.00M	609.00M	743.00M
Cash Flow
Free Cash Flow	3.44B	3.55B	3.04B	1.86B	2.76B	3.31B
Operating Cash Flow	4.01B	4.11B	3.75B	2.56B	3.33B	3.72B
Investing Cash Flow	-794.00M	-534.00M	-742.00M	-1.60B	-592.00M	-878.00M
Financing Cash Flow	-3.17B	-3.39B	-2.79B	-952.00M	-2.77B	-2.82B

Colgate-Palmolive Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 78.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CL, the sentiment is Neutral. The current price of 78.76 is above the 20-day moving average (MA) of 77.53, below the 50-day MA of 79.38, and below the 200-day MA of 86.18, indicating a neutral trend. The MACD of -0.59 indicates Negative momentum. The RSI at 53.52 is Neutral, neither overbought nor oversold. The STOCH value of 73.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CL.

Colgate-Palmolive Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	74 Outperform	$340.67B	21.28	31.90%	2.84%	1.23%	17.97%
UL	73 Outperform	$149.67B	25.02	28.36%	3.31%	-0.30%	-14.60%
CHD	72 Outperform	$20.70B	27.14	18.59%	1.39%	1.45%	42.04%
CL	63 Neutral	$61.99B	21.55	450.35%	2.62%	-0.05%	2.49%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KMB	62 Neutral	$33.40B	17.05	136.87%	4.81%	-10.04%	-23.41%
CLX	53 Neutral	$13.29B	17.07	4163.16%	4.58%	-9.35%	123.06%

Colgate-Palmolive Corporate Events

Colgate-Palmolive Launches Strategic Growth Program

On July 31, 2025, Colgate-Palmolive‘s Board of Directors approved a new three-year Strategic Growth and Productivity Program aimed at driving future growth and supporting its 2030 strategy. This initiative is expected to incur cumulative pre-tax charges of $200 to $300 million, with a significant portion allocated to employee-related costs and asset-related expenses. The program will impact various regions, including North America, Latin America, Europe, Asia Pacific, Africa/Eurasia, and Hill’s Pet Nutrition, with the majority of charges anticipated to be cash expenditures by December 31, 2028.

The most recent analyst rating on (CL) stock is a Hold with a $82.00 price target. To see the full list of analyst forecasts on Colgate-Palmolive stock, see the CL Stock Forecast page.